Flexible, Affordable Mortgage Options for Borrowers in Virginia, Maryland & Washington DC
Conventional loans are the most popular type of mortgage in the country. They offer competitive rates, flexible terms, and low down payment options — making them an excellent choice for first‑time buyers, move‑up buyers, and homeowners looking to refinance.
If you have stable income, good credit, and want a loan with strong long‑term benefits, a conventional mortgage may be the perfect fit.
Not sure if a Conventional Loan is right for you? Explore our FHA Loan options to compare flexible, low‑down‑payment alternatives. "FHA Loan"
A conventional loan is a mortgage that is not backed by the government. Instead, it follows guidelines set by Fannie Mae and Freddie Mac, the two major agencies that standardize mortgage lending.
Because these loans are not government‑insured, they often offer:
Conventional loans are available for primary homes, second homes, and investment properties.
Conventional loans offer several advantages that make them one of the most attractive mortgage options available.
Low down payment options starting at 3 percent Competitive interest rates Flexible loan terms from 10 to 30 years No upfront mortgage insurance premium Mortgage insurance can be removed once you reach 20 percent equity Higher loan limits than FHA in many counties Available for primary, second homes, and investment properties Ideal for borrowers with strong credit and stable income.
Conventional loans offer flexible down payment options depending on your credit, income, and property type.
3 percent down for first‑time homebuyers 5 percent down for most borrowers 10 percent down for second homes 15 to 20 percent down for investment properties
Gift funds may be allowed depending on the program.
Whether you're a first‑time buyer, upgrading to your next home, or refinancing, our team makes the process simple and stress‑free. Get clear guidance, competitive rates, and fast approvals from a local lender serving Virginia, Maryland & Washington DC.
Get a personalized quote today — no obligation, no credit pull required.
To qualify for a conventional loan, lenders typically look for:
A minimum credit score of 620 or higher Stable income and employment history A reasonable debt‑to‑income ratio Sufficient assets for down payment and closing costs A clean credit history with no recent major derogatory events
Borrowers with higher credit scores may qualify for better rates and lower mortgage insurance costs.
| Scenario | Home Price | Down Payment | Loan Amount | Borrower Profile | Result |
|---|---|---|---|---|---|
| First‑Time Buyer in Fairfax, VA | $480,000 | 3% ($14,400) | $465,600 | 700 credit, W‑2 income | Approved with low‑MI conventional loan |
| Move‑Up Buyer in Montgomery County, MD | $650,000 | 5% ($32,500) | $617,500 | 740 credit, strong reserves | Approved with competitive rate and MI removal plan |
| Second Home in Ocean City, MD | $525,000 | 10% ($52,500) | $472,500 | 720 credit, salaried | Approved for second‑home conventional loan |
| Investment Property in Arlington, VA | $590,000 | 20% ($118,000) | $472,000 | 760 credit, landlord experience | Approved with favorable investment‑property pricing |
| Refinance in Washington, DC | $510,000 loan | N/A | $510,000 | 730 credit, improved equity | Approved — removed PMI and lowered monthly payment |
Conventional loans differ from FHA, VA, and USDA loans in several ways.
Conventional loans are not government‑insured Lower long‑term costs for borrowers with strong credit Mortgage insurance can be removed Higher loan limits in many areas More flexibility for second homes and investment properties
Government‑backed loans may be better for borrowers with lower credit scores or limited down payment funds.
Conventional loans are a great fit for many borrowers, but they aren’t the best option for everyone. You may want to consider an alternative loan program if:
Conventional loans require stronger credit. Borrowers with lower scores may qualify more easily for FHA or VA financing.
While conventional loans allow as little as 3% down, FHA loans may offer more flexibility for borrowers with smaller savings or higher debt‑to‑income ratios.
FHA loans often allow higher DTIs, making them a better fit for borrowers with tighter monthly budgets.
FHA loans may offer lower mortgage insurance costs for borrowers with lower credit scores, resulting in a more affordable monthly payment.
FHA financing may offer more favorable terms for duplexes, triplexes, or four‑unit properties.
Bankruptcies, foreclosures, or major derogatory events may require longer waiting periods for conventional loans compared to FHA.
Many homeowners choose to refinance their FHA loan into a conventional loan to:
Remove mortgage insurance Lower their monthly payment Take advantage of better interest rates Access equity through a cash‑out refinance
If your home has gained value or you’ve improved your credit, refinancing into a conventional loan may save you money.
Conventional loan limits are set by the FHFA and determine the maximum loan amount eligible for a conforming mortgage.
Many local markets qualify for higher limits, including:
If you’re unsure which limit applies to your county, our team can guide you.
Closing costs typically range from 2 to 5 percent of the loan amount and may include:
Appraisal Title fees Origination fees Taxes Insurance
Seller credits and lender credits may help reduce your out‑of‑pocket expenses.
You can still qualify for a conventional loan even if you owe taxes, as long as:
You have a payment plan in place You’ve made at least one payment Your monthly payment is included in your debt‑to‑income ratio
Tax debt does not automatically disqualify you.
Conventional loans are best for borrowers with strong credit, stable income, and the ability to make a reasonable down payment.
FHA loans are better for borrowers with lower credit scores or higher debt‑to‑income ratios.
Choosing the right loan depends on your financial profile and long‑term goals.
As a local lender serving VA, MD & DC, we understand the unique needs of homebuyers in our region. Whether you're purchasing in Northern Virginia, Maryland suburbs, or Washington DC, we offer personalized guidance and competitive loan options.
Local expertise in VA, MD & DC Fast approvals and competitive rates Personalized loan options Transparent communication
⭐⭐⭐⭐⭐ “ABC United Finance made our first home purchase in Fairfax incredibly smooth. We used a 3% down conventional loan, and the team walked us through every step with patience and clarity. We closed on time and got a great rate.” — Emily & Jordan S., Fairfax, VA
⭐⭐⭐⭐⭐ “We refinanced our FHA loan into a conventional mortgage to remove PMI, and it saved us over $300 a month. ABC United Finance explained all our options and made the process fast and stress‑free.” — Marcus T., Silver Spring, MD
⭐⭐⭐⭐⭐ “As a move‑up buyer in Washington, DC, I needed a lender who understood the local market. ABC United Finance helped me secure a competitive rate with only 5% down. Their communication was excellent from start to finish.” — Rachel L., Washington, DC
What credit score do I need for a conventional loan? Most lenders require a minimum credit score of 620. Borrowers with higher scores may qualify for better rates and lower mortgage insurance costs.
How much do I need for a down payment? Down payments start as low as 3 percent for first‑time homebuyers. Most borrowers put down between 3 and 5 percent, while second homes and investment properties may require 10 to 20 percent.
Can I remove mortgage insurance on a conventional loan? Yes. Unlike FHA loans, mortgage insurance on a conventional loan can be removed once you reach 20 percent equity.
Are conventional loans good for first‑time homebuyers? Yes. Conventional loans offer low down payments, competitive rates, and flexible terms, making them a strong option for first‑time buyers with decent credit.
Can I use gift funds for my down payment? Yes. Gift funds are allowed for primary residences, depending on the loan program and your credit profile.
Can I qualify for a conventional loan if I’m self‑employed? Yes. You can qualify with tax returns, bank statements, or alternative documentation depending on your income structure.
Can I buy a second home or investment property with a conventional loan? Yes. Conventional loans are one of the best options for second homes and investment properties.
Can I refinance my FHA loan into a conventional loan? Yes. Many homeowners refinance into a conventional loan to remove mortgage insurance and lower their monthly payment.
What are the closing costs for a conventional loan? Closing costs typically range from 2 to 5 percent of the loan amount. Seller credits and lender credits may help reduce your out‑of‑pocket expenses.
Can I qualify for a conventional loan if I owe taxes? Yes. As long as you have a payment plan in place and have made at least one payment, you may still qualify.
Whether you're a first‑time buyer, upgrading to your next home, or refinancing, we make the process simple and stress‑free. Get personalized guidance, competitive rates, and fast approvals from a local team serving Virginia, Maryland & Washington DC.
